What is the yield on a two year treasury security


Problem:

The real risk free rate of interest is 3%. Inflation is expected to be 2% this year and 4 percent during the next two years. Assume that the maturity risk premium is zero. What is the yield on a two year treasury security? What is the yield on a 3 year treasury security?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the yield on a two year treasury security
Reference No:- TGS02064454

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)